Question :
118.SkyBucks Bagels sells boxes of bagels each with a variable : 1302730
118.SkyBucks Bagels sells boxes of bagels each with a variable cost of 45% of sales. Its fixed costs are $36,000 per year. Each box has a contribution margin of $8. How much sales revenue does SkyBucks need to break-even per year if bagels are its only product?
A.$65,455
B.$80,000
C.$4,500
D.$19,800
119.Plant Bottling needs to reduce the selling price of its acrylic water bottles in order to be competitive. Currently, it has fixed costs of $110,000 and variable costs per unit of $4.10. If Plant Bottling can sell 40,000 units, what price should it charge in order to break-even?
A.$4.10
B.$2.75
C.$6.85
D.None of these answer choices are correct.
120.Rogers Racers makes toy race cars that sell for $12 each with a variable cost of $5 per car. Annual fixed costs are $7,000. How much will profit increase if 600 more units are sold?
A.$7,200
B.$4,200
C.$1,000
D.$3,000
121.Rogers Racers makes toy race cars that sell for $12 each with a variable cost of $5 per car. Annual fixed costs are $7,000. How many cars must be sold to earn a profit of $3,150?
A.1,450 cars
B.450 cars
C.263 cars
D.550 cars
122.Rogers Racers makes toy race cars that sell for $12 each with a variable cost of $5 per car. Annual fixed costs are $7,000. If Rogers Racers sells 50 units fewer than break-even, how much loss would the company recognize on its income statement?
A.$350
B.$4,200
C.$250
D.$70
123.Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure:
Selling price per doll $8.00
Variable costs per doll:
Production (manufacturing costs) $1.20
Selling and administration (non-manufacturing costs) $0.40
Total fixed costs:
Production (manufacturing costs) $40,000 per year
Selling and administration (non-manufacturing costs) $32,000 per year
In which range does the break-even point fall?
A.Between 5,000 and 6,000 units
B.Between 6,000 and 7,000 units
C.Between 10,000 and 11,000 units
D.Between 11,000 and 12,000 units
124.Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure:
Selling price per doll $8.00
Variable costs per doll:
Production (manufacturing costs) $1.20
Selling and administration (non-manufacturing costs) $0.40
Total fixed costs:
Production (manufacturing costs) $40,000 per year
Selling and administration (non-manufacturing costs) $32,000 per year
Management is proposing to pay sales people a commission equal to 10% of the variable production cost. What will be the new contribution margin ratio if the commission plan is implemented?
A.70%
B.80%
C.78.5%
D.The number of units to be sold is needed to determine the answer.
125.Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure:
Selling price per doll $8.00
Variable costs per doll:
Production (manufacturing costs) $1.20
Selling and administration (non-manufacturing costs) $0.40
Total fixed costs:
Production (manufacturing costs) $40,000 per year
Selling and administration (non-manufacturing costs) $32,000 per year
Assume that the current sales level is 14,000 dolls. What impact would a 10% increase in sales have on income?
A.Income would increase by 10%
B.Income would increase by about 19%
C.Income would increase by $11,200
D.Income would increase by about 51%
126.Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure:
Selling price per doll $8.00
Variable costs per doll:
Production (manufacturing costs) $1.20
Selling and administration (non-manufacturing costs) $0.40
Total fixed costs:
Production (manufacturing costs) $40,000 per year
Selling and administration (non-manufacturing costs) $32,000 per year
Assume that sales are expected to fall from 14,000 units this year to 13,000 units next year. Angel Toys would like to raise the selling price next year from the current $8.00 per unit to achieve the same profits next year as the current year. What will the sales price have to be next year, to generate the same profits next year as this year?
A.Somewhere between $8.00 and $8.39
B.Somewhere between $8.40 and $8.59
C. Somewhere between $8.60 to $9.00
D. Higher than $10.00
127.Charlie Shine has written a self-improvement book. The following are its pricing and cost details:
Selling price $18.00 per book
Variable cost per unit:
Production $3.50
Selling & administrative 1.90
Fixed costs:
Production $33,600 per year
Selling & administrative 15,540 per year
How many books must Charlie sell to break-even?
A.70,200 books
B.3,900 books
C.2,318 books
D.2,667 books
